Have we hit a second iceberg? If so, does it leave smaller organisations all lost at sea? Photograph: Louise Murray / Rex Features

With the European economy in freefall, the dreaded phrase "double-dip recession" has been bandied around so much of late. But does it apply to UK culture and if so, can we bounce back?

When credit first crunched in 2008, the arts world proved remarkably resilient, with fine art and ticket sales both holding firm initially. But as the cuts bite - and bite hard - organisations are struggling to balance loss of public subsidy with a public feeling the pinch.

In research published last week, Arts Quarter surveyed 452 arts organisations and found that one-third predicted it will take until 2015 to plug their funding gaps. AQ managing director John Nicholls told The Stage that the results signalled a "second sector-specific recession". And smaller companies are likely to be hardest hit.